Allahabad Bank to focus on retail book and wider reach: CMD Subhalakshmi Panse

"Our presence is concentrated more in UP and Bengal. We want to spread our wings into other parts, especially the South," Panse said.

PTI|

Updated: Nov 04, 2012, 01.18 PM IST

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MUMBAI: The new chairperson of the state-run Allahabad Bank has said increasing the footprint, especially in the South and a greater focus on the retail segment will the priorities for the Kolkata-based lender.

"Our presence is concentrated more in UP and Bengal. We want to spread our wings into other parts, especially the South," newly-appointed chairperson and managing director Subhalakshmi Panse told PTI.

The bank is yet to announce the second quarter earnings. In the first quarter it had reported one of the best numbers among state-runs banks, with a 23 per cent rise in net profit.

On the business front, the chairperson said the focus will be on retail expansion.

"Our aim to increase the share of our retail in the overall business to 25 per cent in next two years from 15 per cent now," she said, and added that with sound presence in semi-urban and rural markets, the bank is well-placed to achieve this.

The bank has around 741 branches in UP and 487 in Bengal out of total 2,500. "As we plan to open 250 branches this financial year, we will focus on other regions, mostly in the South," said Panse, who was executive director at Vijaya Bank before.

On the overall deposit and credit growth, she said the bank sees 16 per cent growth in credit and 14 per cent growth in deposits this year, and it will be able to achieve total business target of Rs 3.20 lakh crore this fiscal.

"We think the target is achievable," she said, adding that net interest margin will be around 3 per cent.

Increasing the low cost deposit base (Casa) to 32 per cent from the present 30 per cent was another focus area, she said.

The Kolkata-based bank reported 23 per cent increase in net to Rs 514 crore in the June quarter, while the total business rose to Rs 2.67 lakh crore.